Strong Order Book and Double Digit Growth Mark Stand-Out Year for TCS

PRESS RELEASE

 

Strong Order Book and Double Digit Growth Mark Stand-Out Year for TCS

  • FY 19 US Dollar Revenue $20.9 Bn, +9.6% YoY (+11.4% in CC)
  • Incremental revenue added: $2.2Bn in CC
  • FY 19 Operating Margin: 25.6%, +79 bps YoY
  • FY 19 Net Income: $4.5 Bn, up 12.2% YoY

MUMBAI, April 12, 2019: Tata Consultancy Services (BSE: 532540, NSE: TCS), the leading IT services, consulting and business solutions firm reported its consolidated financial results according to Ind AS and IFRS, for the quarter and the financial year ended as on March 31, 2019.

Annual Highlights for 2018-19

Q4 FY 2019 Highlights

  • Digital Revenue: 28.6% of Rev, +50.6% YoY in CC
  • Robust Client Additions:

$100M+ band: 44 (+6 YoY)
$50M+ band: 99 (+2 YoY)
$20M+ band: 215 (+8 YoY)
$10M+ band: 371 (+21 YoY)
$5M+ band: 532 (+37 YoY)
$1M+ band: 1008 (+45 YoY)

  • Employee Metrics:
    • Net addition: 29,287 employees (FY 18: 7,775)
    • Employee headcount: 424,285
    • LTM IT Services Attrition: 11.3%
  • Cash Conversion: Operating Cash Flow 100.6% of Net Income.
  • Over $ 3,863 Mn of cash returned to shareholders in dividends and buyback
  • FY 19 EPS at $1.19, up 14.0% YoY
  • Revenue of $5.4 Bn, +8.5% YoY (+12.7% YoY and +2.4% QoQ in CC)
  • Digital Revenue: 31% of Rev, +46.4% YoY in CC
  • Operating Margin: 25.1%, -31 bps YoY
  • Net Margin: 21.4%, -15 bps YoY
  • Net Addition: 6,356 employees
  • Final Dividend per share (proposed) of Rs 18.00

 

Commenting on the Q4 performance, Rajesh Gopinathan, Chief Executive Officer and Managing Director, said, “This is the strongest revenue growth that we have had in the last fifteen quarters. Our order book is bigger than in the prior three quarters, and the deal pipeline is also robust. Despite macro uncertainties ahead, our strong exit positions us very well for the new fiscal.”

He added, Our full spectrum digital transformation capabilities and thought leadership is what is driving the strong demand for our services, and making us the preferred innovation and transformation partner to our customers. Our Business 4.0™ framework has now become the de facto model for enterprises looking to embrace new technology-enabled business models, pursue new revenue streams or deliver superior customer experiences.”

N Ganapathy Subramaniam, Chief Operating Officer & Executive Director, said,“It is a very satisfying finish to a year marked by steady growth acceleration and order book expansion every quarter. The expanding scale and scope of our cognitive business operations engagements have been central to our growth. Our Machine First™ approach and location-independent Agile methods are helping our customers reimagine their processes and underlying systems, participate in ecosystems and transform themselves into Business 4.0 organizations.”

V Ramakrishnan, Chief Financial Officer, said, “Double digit growth, higher quality of the incremental business, and best-in-class execution capabilities have helped us expand our operating margin year on year. Our foresight in investing very early on in building digital skills and transformational capabilities has not only gained us market share, but has also resulted in our very resilient, industry-leading margin today.

IFRS Financial Statements

Consolidated Statements of Comprehensive Income

For the Year ended March 31, 2018, and March 31, 2019

(In millions of $, except per share data)

 

 

Year ended

 March 31, 2018

Year ended

 March 31, 2019

 Revenue

19,089

20,913

 Cost of revenue

11,054

12,160

 Gross margin

8,035

8,753

 SG & A expenses

3,305

3,406

 Operating income

4,730

5,347

 Other income (expense), net

557

589

 Income before income taxes

5,287

5,936

 Income taxes

1,273

1,428

 Income after income taxes

4,014

4,508

 Minority interest

9

14

 Net income

4,005

4,494

 Earnings per share in $

1.04

1.19

 

Consolidated Statements of Comprehensive Income

For the three-month periods ended March 31, 2018, and March 31, 2019

(In millions of $, except per share data)

 

 

Three-month period ended

 March 31, 2018

Three-month period ended

 March 31, 2019

 Revenue

4,972

5,397

 Cost of revenue

2,871

3,144

 Gross margin

2,101

2,253

 SG & A expenses

838

899

 Operating income

1,263

1,354

 Other income (expense), net

152

165

 Income before income taxes

1,415

1,519

 Income taxes

342

362

 Income after income taxes

1,073

1,157

 Minority interest

3

3

 Net income

1,070

1,154

 Earnings per share in $

0.28

0.31

Other Operating expenses for the period Q4 FY2019 includes a contribution of Rupees 220 Crore to an electoral trust

Consolidated Statements of Financial Position

As of March 31, 2018, and March 31, 2019

(In millions of $)

 

As of March 31, 2018

As of March 31, 2019

Assets

 Property and equipment

1,784

1,685

 Intangible assets and Goodwill

599

581

 Accounts Receivable

3,849

3,969

 Unbilled Revenues

1,063

1,298

 Investments

5,536

4,243

 Cash and Cash equivalents

751

1,045

 Other current assets

1,385

2,908

 Other non-current assets

1,702

1,207

Total Assets

16,669

16,936

 

 Shareholders' Funds

13,413

13,243

 Long term borrowings

8

6

 Short term borrowings

30

3

 Other current liabilities

2,712

3,192

 Other non-current liabilities

443

423

 Minority Interest

63

69

 Total Liabilities

16,669

16,936

 

About Tata Consultancy Services Ltd (TCS)

Tata Consultancy Services is an IT services, consulting and business solutions organization that has been partnering with many of the world’s largest businesses in their transformation journeys for the last fifty years. TCS offers a consulting-led, cognitive powered, integrated portfolio of business, technology and engineering services and solutions. This is delivered through its unique Location Independent Agile delivery model, recognized as a benchmark of excellence in software development.

A part of the Tata group, India's largest multinational business group, TCS has over 424,000 of the world’s best-trained consultants in 46 countries. The company generated consolidated revenues of US $20.9 billion in the fiscal year ended March 31, 2019, and is listed on the BSE (formerly Bombay Stock Exchange) and the NSE (National Stock Exchange) in India. TCS' proactive stance on climate change and award winning work with communities across the world have earned it a place in leading sustainability indices such as the Dow Jones Sustainability Index (DJSI), MSCI Global Sustainability Index and the FTSE4Good Emerging Index. For more information, visit us at www.tcs.com.

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